PROFITS at Royal Mail have plummeted following the government’s cheap sell-off of the service to privateers, the company revealed yesterday.We can't have the market immiserating those investors, can we?
The firm blamed the “harsh realities” of competition for the pre-tax profit fall to £218 million in the six months to September 28 from £233m a year earlier.
Royal Mail’s shares slumped 8 per cent yesterday and are down 30 per cent from a peak in February.
CWU [Communications Workers Union] deputy general secretary Dave Ward said: “We need (regulatory body) Ofcom to perform its primary statutory duty by urgently reviewing the threat competition poses to the universal postal service.Comrade.
“We’d like to see a cap put on competition to Royal Mail. The results today are proof that direct delivery competition is damaging the financial sustainability of the universal postal service.”